“o. itemList. length” “this. config. text. ariaShown”
“This. config. text. ariaFermé”
Dollar index rises behind optimistic production data
Australia falls after recession is confirmed
Euro falls below $1. 19
* Chart: global exchange rates in 2020 https://tmsnrt. rs/2RBWI5E (price updates, reviews, updates throughout)
By Elizabeth Howcroft
LONDON, 2 September (Reuters) – The dollar prolonged profits on Wednesday night and the euro fell from the key point of $1. 20 in the last session, while the Australian dollar was left behind after the country showed it was in recession.
The dollar was strengthened overnight, aided by production knowledge and technical points in the United States.
It prolonged initial earnings in London and then stabilized when the morning led to 92,586 at 1054 GMT, an increase of 0. 4% in the day.
Commerzbank analyst Thu Lan Nguyen said that while the long-term economic benefits of coronavirus are unknown, it is the relative economic functionality of countries that changes rates in addition to financial policy developments.
“The US dollar was able to gain advantages from particularly advanced ISM data, suggesting continuous recovery at full speed, which widens the likelihood that the United States could weather the relatively larger crisis after all,” he wrote in a note to customers. . .
The euro fell 0. 4% to $1. 18645 at 1055 GMT, returning from the $1. 20 key it first reached since 2018 on Tuesday.
The euro has risen more than 10% from its lowest point in March and, not disappointed by Tuesday’s strangely negative eurozone inflation data, investors made a profit after leading European Central Bank economist Philip Lane said the euro-dollar rate “mattered. “”for financial policy.
“(Lane’s commentary) shows that the ECB does not ignore what is on the inflation front,” said Kenneth Broux, Corporatee Generale’s exchange rate strata. “The threat is that if inflation exceeds the target, the more powerful the euro becomes.
“It’s attractive because the ECB is affected by this relentless appreciation of the euro or the fall in the dollar,” he added.
“What I hope now is a little more euro profit-taking before next week’s ECB meeting, because investors will pay attention to Lane’s comments now,” he said.
Investors will now take a look to see if the ECB wants the US Federal Reserve to reorient its policy toward inflation while reviewing its financial policy, Broux said.
With the euro, the Australian lags behind G10 currencies, with a 0. 4% drop on the day between 0. 7341 and 1108 GMT.
Knowledge of Australian gross domestic product, poorer than expected, showed that the country’s economy fell 7 cents consistently in the 3 months to June, placing it in its first recession in about 3 decades.
The country was also affected on Tuesday by the suspension of China’s barley imports from Australia’s largest grain exporter, in addition to tensions between China and Australia that until recently had left Australian agricultural products largely unscathed.
Risky currencies replaced little that day: Norwegian and Swedish kronor fell by 0. 1% against the dollar, while the New Zealand dollar remained largely stable.
German retail sales fell unexpectedly, 0. 9% in July, without a Reuters forecast of a 0. 5% increase and thwarting hopes that family spending could lead to a strong recovery after the impact of coronavirus.
The spread of COVID-19 continues to restrict activity, with Poland in a position to ban direct flights from 44 countries, adding Spain, Israel and Romania.
In the United States, there are still “serious differences” between Democrats and the White House about the proposed attendance (report through Elizabeth Howcroft; edited through Christopher Cushing, Larry King).